"Microsoft has unveiled a new touch-sensitive coffee table-shaped computer called 'Surface'. Designed to do away with the need for a traditional mouse and keyboard, users can instead use their fingers to operate the computer. Also designed to interact with mobile phones placed on the surface, Microsoft says it will initially sell the unit to corporate customers. These will include hotels, casinos, phone stores and restaurants." Instant update:More details and a video.

Unfortunately for Microsoft, at a price of 10k USD, those things aren't going to be in the living rooms of grannies sorting through photos while syncing their zunes any time soon. So their initial market are going to be places where Microsoft competes with other (likely to be a lot cheaper) touch screen based kiosk system manufacturers.

The 'killer feature' of the device is that you can put a 'thing' on it, and associate advertising with it. That's why Microsoft touts the 'fast food restaurant' scenario in the FAQ: kids put on toys from their 'happy meals' on it, and get to see the advertising for the movie.